What is $50 Billion Between Friends?
If I was having financial problems and went to credit counselling, and told the person helping me that I was overspending how much I made by $10,000 a year, they’d be very upset and tell me I had to change my ways. If I then came back 3 months later and said I miscalculated and that in fact I was going to overspend this year by $50,000 (but that is only an estimate), they’d ask for my credit cards and tell me to seriously think about bankruptcy and/or psychological help on impulse spending.
Record Breaking Deficit!
For the Federal Government take that scenario and multiply it by 1,000,000 and you’ll see where Canada stands now. The Feds announced a slight miscalculation in their deficit and in fact it is $50 Billion not their previous estimates, and they are not sure they are correct now, they’ll tell us in December.
Yes, we are in a Recession and maybe even a Depression, but this will be the largest deficit EVER (even more than the Trudeau and Mulroney Governments did in the 70’s and 80’s), which is astounding.
Lowering incomes are part of the problems (i.e. deadbeats like me who don’t have income, aren’t paying tax like I did last year), spending MASSIVE money on the auto industry is not helping either, but this is painful. Is it really going to be $50 Billion, my guess is they are sand bagging and will bring it in about $40 Billion and talk about what a great job they did in tough circumstances.
Coughing Up More EI Benefits Too
Stats Canada published their monthly report on Employment Insurance Claims (nope I am not in that stat yet), and those numbers are scarey too. The number of folks collecting EI is up 10.6% from the previous month (not year long, one 30 day period). The number quoted is over 65,000 more claimants in March.
EI Claims
Remember the government has previously used the EI fund as a buffer for spending using up extra funds, I think they can’t do that any more.
Interesting times in downtown Ottawa.
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